Understanding The Human Resource Management Strategy Business Essay Example
Understanding The Human Resource Management Strategy Business Essay Example

Understanding The Human Resource Management Strategy Business Essay Example

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  • Pages: 10 (2539 words)
  • Published: August 8, 2017
  • Type: Case Study
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The text underscores the significance of Strategic Human Resource Management (SHRM) in organizations, defining it as the management of people within an organization reflected in HR policies and practices. To be effective, these policies and practices must integrate and align with the overall business strategy. SHRM has played a crucial role since the 1980s in helping organizations achieve their strategic goals, particularly due to globalization which has brought together diverse business environments necessitating organizations to showcase their true objectives through SHRM activities. By employing SHRM, organizations can navigate global demands and ascertain their position in the global business sphere. Furthermore, government regulations have a significant impact on organizational activities and operations; however, implementing strategic HR policies can assist organizations in overcoming these challenges by adequately preparing staff, employees, and stakeholders to effectively

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address them. In today's world, research activities based on knowledge greatly influence organizations; hence Strategic Human Resource Management (SHRM) is vital for managing HR processes accurately and preparing for future goals while also considering labor demands and benefits within an organization influenced by labor unions.The text highlights the importance of SHRM activities through the case study of ASDA, a well-established retailer founded in 1965 by Yorkshire farmers primarily based in the North of Britain. During the 70s and 80s, ASDA expanded its operations and acquired competitor Gateways Superstores in 1989 to broaden its product offerings. Currently, ASDA is the UK's second largest food marketer with 370 shops specializing in food and clothing sales. Some stores also offer CDs, books, DVDs, household items, financial services, and take-away meals.

ASDA's SHRM practices play a crucial role in their operations. They recruit approximately 10,000 workers annually acros

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various demographics including permanent staff members working for as little as 10 weeks per year and individuals over the age of 50 - a demographic that ASDA targets specifically and has already employed over 22,000 people from this age group. Employee training holds great significance at ASDA as it is considered top-notch within the industry. Every year new trainees are hired to build a proactive management team.

ASDA employs a unique management structure as part of its Strategic Human Resource Management (SHRM). This structure comprises the Board of Directors at the corporate level, regional and line directors at the business level, and various positions such as CEO, line supervisors, state directors, chairman, CFO,CFO CTO,and divisional head at operational level.ASDA has distinct policies in place to ensure that each role has authority and position, while also maintaining supervision and monitoring of all activities. According to a source (http://www.allbusiness.com/retail-treade/4297631-1.html), ASDA effectively supports organizations in meeting employee needs through Strategic Human Resource Management (SHRM). By incorporating modern ideas and models into traditional HR practices, ASDA brings about positive changes that benefit both employees and the organization as a whole.

From hiring to training, assessment, and discipline processes, SHRM has a positive impact on employee management at ASDA. It reduces recruitment timeframes, retains staff members, and enhances productivity through development programs. Additionally, ASDA offers career plans that promote employee loyalty while enabling them to compete effectively with market rivals.

ASDA is known for adhering to high HR management standards including employee selection, motivation, and training. This commitment has led to impressive overall growth, revenue increase, and stakeholder satisfaction for the company. As stated on their website, plans have been announced by ASDA

to create 9000 new jobs in the UK through various expansion initiatives such as new store openings and extensions. They are also focusing on initiatives like 'ASDA Living', which provides non-food selling space, as well as online shopping via ASDA Direct.Despite already employing 179,000 individuals, Wal-Mart International's ambitious growth plan remains noteworthy. Dong McMillan, President and CEO of the company, expressed gratitude towards Andy Clarke for his leadership role in ASDA's growth. McMillan also praised the management team at ASDA for their proactive approach in serving customers, noting that these practices position ASDA well for continued success. As a global organization, ASDA places great importance on strategic human resource management policies to achieve overall business growth. Initiatives have been implemented to nurture talent within the organization through recruitment of highly educated trainee officers and offering graduate programs. Strategies are also employed to enhance employee skills through effective communication with employees and stakeholders at all levels. These efforts have successfully helped ASDA's HRM direction achieve strategic goals. According to Terry Lehy's statement, Tesco leads in six out of its twelve operating countries. It is notable that Tesco's largest stores are located in Budapest rather than Bristol or Birmingham. Currently, Tesco operates 1,878 shops in the UK, 261 shops across Europe, and 179 shops throughout Asia with plans to open an additional 184 shops worldwide within the next year.In the UK market, Tesco has various store types: 83 Tesco Extra shops, 4447 Tesco Super Shops, 161 Tesco Metro shops, and 277 Tesco Express shops. Additionally, they recently acquired T & S shops that will be converted into new formats after acquisition. Apart from their retail business, Tesco

has expanded into other industries like crude oil with Tesco Oil and financial services through Tesco Finance. They are also transitioning towards CNG (Compressed Natural Gas) with Tesco CNG Transition. Through partnerships and mergers, the company is involved in various ventures both domestically and internationally.

Tesco places a strong emphasis on hiring high-quality staff members who have contributed to its successful operations. Human resource planning plays a vital role in these expansion efforts and involves activities such as employee retention, candidate search planning, training provision, and skills analysis.

For effective expansion, Tesco must consider external factors such as supply and demand dynamics, labor market conditions, public perception of its image/goodwill, PESTEL factors (Political, Economic Sociocultural Technological Environmental Legal), unemployment rates in different locations,, availability of accommodations,,and childcare options for relocated employees' families.Moreover, Tesco must also consider competition from rivals, career opportunities for spouses/partners at new locations, and geographical factors in its business expansion efforts. Internal factors such as recruitment policies, human resource planning, farm size, reduction of recruitment costs, ease of travel time, timely responses to job applications, temporary employee arrangements, work culture, and growth objectives/expansion plans also play a significant role in shaping Tesco's growth strategies. However, Tesco's Human Resource management overcomes these influencing factors through unique characteristics like employee training, motivation techniques, new learning methods, and development programs. In today's ever-changing global business landscape,Tesco actively engages in information sharing initiatives,joint ventures,and mergers to meet the demands of its global customers.To support these expanded activities,Tesco requires skilled employees who possess both local knowledge and an understanding of global markets to effectively manage their diverse business operations.With its recent entry into the Asian market,Tesco specifically needs individuals

with expertise in language,culture,reliigion,politics,and ethics.They are particularly seeking a state manager in Asia who can handle the business effectively while being knowledgeable about the labor market and political/legal situation in Asia.Proficiency in the local language is a requirement for this position, and it is also crucial for Tesco's expansion into the Asian market. To ensure successful growth, Tesco needs to reserve staff and consider hiring skilled employees from local organizations. Employing local staff at a lower cost can provide better growth opportunities. Both ASDA and Tesco recognize the importance of human resource management (HRM) in their expansion efforts. ASDA aims to grow its stores locally and globally each year, while Tesco focuses on strategic advertising and hiring experienced leaders. ASDA emphasizes hiring highly educated trainee officers and experienced professionals from similar organizations who can adapt well to new environments. Similarly, Tesco understands the significance of HRM in selecting, recruiting, motivating, and training employees. Their HR program includes job analysis, human resource planning, employee recruitment, selection processes, performance assessment, training and development opportunities, career planning initiatives, employee motivation strategies such as incentives, bonuses, and leaves.Both ASDA and Tesco recognize the importance of a comprehensive human resource program for effective organizational management. This program involves collecting bi-data for recruitment purposes and ensuring the selection and development of talented individuals who are motivated to contribute to the company's success. The human resource plan plays a crucial role in managing and achieving the organization's objectives by outlining key aims to be accomplished. The diagram at [hypertext transfer protocol: //www.merseyfire.gov.uk/aspx/pages/Leadership_Team/org_chart/hr.htm] illustrates the function of Human Resource maps. Implementing this program can strengthen the organization's structures and utilize its workforce towards

strategic goals, maintaining a balance between managing employees and financial resources for positive outcomes. Additionally, it enables job creation, expansion both locally and globally through activities like learning, mergers, joint ventures, etc., in both domestic and international operations. Through employment policies such as promotions, retention strategies, rewards systems, penalties enforcement, health & safety regulations implementation; organizations ensure good practices for employees that foster loyalty and contribute to collective efforts in achieving organizational goals.Currently, Tesco is implementing a human resource program where highly skilled individuals are appointed as managers to oversee all operational activities. As a result, multiple stores are able to provide quality service to customers and generate substantial turnovers that contribute to Tesco's overall objectives. According to my research and information from the Tesco company websites, human resource management policies play a crucial role in organizations by establishing necessary rules and regulations for employees to effectively carry out their tasks. These policies are influenced by regulatory demands and aim to protect the rights of both employees and employers. The main focus is on implementing best practices in human resource management in order to achieve organizational goals. These policies uphold employee rights, motivating them to contribute their skills and qualities towards long-term company objectives. Areas covered include recruiting top talent, offering comprehensive employee benefits, ensuring training and compliance with regulations, creating fair and safe work environments, as well as supporting both performing and non-profit human resources. Tesco, the largest superstore in the UK, serves as an example of these policies through its dedication to providing high-standard products and services. Tesco acknowledges certain rights for its employees while also delivering services for its customers through its

team members.

Tesco guarantees that all employees receive a minimum wage and offers higher pay rates for skilled workers. They have implemented various training programs, graduate programs, motivation initiatives, coaching sessions, and face-to-face discussions to foster strong relationships with employees. The company also prioritizes the well-being and safety of its employees by providing complimentary medical care and hygiene training.

Through effective human resource management strategies, Tesco is able to meet customer needs, compete in price wars with rivals, and establish strong relationships with stakeholders. The organization's regulatory policies promote discipline and accountability for both the company as a whole and its workforce, leading to increased employee loyalty towards employers and the achievement of organizational objectives.

Furthermore, Tesco motivates employees to be dedicated and enthusiastic in their roles while ensuring their present, future, and family lives are more convenient and happier.The text emphasizes the importance of factors that protect individuals from discrimination, ensure equal opportunities for employees, and promote a positive employer-employee relationship. Tesco follows regulatory factors in its recruitment process to accommodate those with disabilities or belonging to cultural groups. The company prioritizes equal opportunities for all staff members through its policies. Employees at Tesco identify themselves as part of the team rather than their country of origin, which boosts confidence in staff management. Both organizational structure and Human Resource Management practices contribute to achieving corporate entrepreneurship goals. HR professionals can consistently promote innovation and entrepreneurship by selecting and implementing appropriate structures and practices. Meeting the need for diverse entrepreneurial activities requires aligning structures and being flexible in policies and procedures. A proper organizational structure is crucial for effective company operation, including clearly communicating responsibilities to meet growth

needs and streamline processes. The provided link offers an organizational chart that serves as a valuable tool for personnel assessment and workforce management.

Source: Organizational ChartHuman Resource software is important for decision-making in various areas such as succession planning, organizational development, HR management, corporate re-organization, and resource management efficiency. An organizational chart is a tool that provides HR professionals with a comprehensive understanding of the organization's structure. On the other hand, organizational culture refers to the workplace environment shaped by employee interactions and influenced by their experiences, strengths, weaknesses, education, and upbringing. While executive leaders play a role in shaping the organizational culture through their actions and leadership style, all employees contribute to it. The relationship between organizational culture and human resources practices is crucial because employees who understand and embrace the culture can align their behaviors with the organization's activities. Furthermore, human resource management policies are greatly influenced by corporate culture and significantly impact supply chain members. Making determinations within Human Resources is important as they enhance shared societal knowledge and promote consistency between employees and a company's goals. This shared societal knowledge also helps employees make informed decisions when faced with unfamiliar situations. Ultimately, having the right individuals in appropriate positions at the right time is vital for organizational effectiveness to meet evolving needs.To achieve the goal of securing suitable personnel for these roles, changes can be made in the Human Resource function. According to Bratton and Gold (2003), Human Resource Management is a strategic approach that focuses on utilizing people's capabilities for sustainable competitive advantage. This involves integrated employment policies, programs, and practices. So, it should not only focus on recruitment, compensation,

and termination but also strategically optimize an organization's human resources at different levels (Source: http://findarticles.com/p/articles/mi-qua3705/is-2002o1/ai-n9060287/). The key tools in Human Resources practices are staffing, training, compensation, and performance management. Building teamwork among lower-level staff and management is important to prevent communication breakdowns and improve relationships among employees. Prioritizing a strong corporate culture helps develop employees and create a positive work environment. In summary, the text emphasizes the importance of considering the "people element" to achieve long-term organizational goals. It highlights various factors in effective human resources management within an organization such as having the right people with a blend of skills and displaying appropriate attitude and behavior.The text emphasizes the importance of effectively developing employees to achieve organizational goals. It suggests considering workforce planning, succession planning, skills development plans, employment equity programs, black economic empowerment initiatives, motivation and fair treatment concerns, and salary levels for attracting and retaining employees. To enhance human resources management effectiveness, it recommends coordinating pay and rating attacks while addressing wider employment issues. Important strategies mentioned include recruiting highly educated and skilled employees, providing training and development programs, evaluating employee performance for higher-ranking positions, and motivating them through incentives. Strong communication among all levels of employees is necessary to ensure proper implementation of regulatory factors such as health and safety regulations,pension schemes,and promotion policies. The text also emphasizes the need to maintain an equal opportunities system within management. It highlights the significance of implementing commissions like the compensation commission, audit commission, and ethics commission to supervise employee responsibilities and policies. Job rotation and analysis are also important for employees in different departments while prioritizing opportunities for job enrichment.

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